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Sponsored Stories are Increasing in Value

Posted on 7.22.2012

The value of advertising on Facebook has been called into question over the last few months, most notably by automobile manufacturer GM’s decision to pull out of the social network’s paid advertising program. But it looks like Mark Zuckerberg may have the last laugh.

According to new data from TBG Digital, the social network’s “Sponsored Stories” ads, which appear on a user’s News Feed anytime one of their friends says they Like a brand, receive far more clicks that the traditional display ads at the right side of the page – and their effectiveness is only continuing to increase.

This is a significant increase from when Sponsored Stories were first launched on the site. Way back in April 2011, TBG Digital conducted a similar study and found that these advertisements had a 46 percent higher click-through rate than standard display ads, as well as a 20 percent lower cost-per-click and an 18 percent lower cost-per-fan. Now, these ads have a CTR that is 53 percent higher than regular display ads asking for Likes.

“These findings are very positive for Facebook and advertisers alike as it shows the Sponsored Story ad format is even more engaging than our previous study indicated,” says TBG Digital in the report

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